market mechanism

Definition

The process by which a market solves a problem allocating resources, especially that of deciding how much of a good or service should be produced, but other such problems as well. The market mechanism is an alternative, for example, to having such decisions made by government.

Use market mechanism in a sentence

“
Everyone panics when the stock market falls below a certain number, I don't worry about it because I think market mechanism will take care of it.
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